It is always better to go for a 2 bhk which is easy to rent as tenants always prefer only 2 bhk and as well great for self use and will be easy to sell in the future. You can get a 5 year old 2 bhk in the same size and price (700 sq and less than 50 lakh including taxes and registration and car park, completed with Occupancy certificate - risk free) instead of a new 1 bhk size (under construction or just completed without OC - high risk), as apartments were sold based on carpet area or built up area then instead of the current super-built up concept with an additional 40% load. Now with demonetization, the secondary market price is down by (30 to 50%) and the primary market price is down by 10% 30% in Mumbai, Pune, Hyderabad, Chennai and Bangalore. Even if the price remains same as in 5 years back, adjusted against inflation, the price is corrected by 50%.
If the loan was already availed and closed for the resale property, it will be easy to process loan from the same bank as they already have most the papers related to the property in the system. Even if you have money, better to take a loan as bank will check the all the papers of the property and instance of cheating will be less and you can pay off the loan after 6 months without paying any pre-closure charges. Also as the inflation is same as the interest rate, they cancel out each other. It is better to buy than rent as emi will equal to rent in the long run and you will end up with an asset. Real estate is the best hedge against inflation in India. Given the construction cost of Rs. 2000 to Rs. 3000 per sq ft and incorporating the land value, anything above 50 lakh is not value for money for a 2 bhk and will take more than 10 years to recover that cost. Always check and verify the land title, encumbrance certificate of last 15 years, commencement certificate and occupancy certificate before buying any property.
If the loan was already availed and closed for the resale property, it will be easy to process loan from the same bank as they already have most the papers related to the property in the system. Even if you have money, better to take a loan as bank will check the all the papers of the property and instance of cheating will be less and you can pay off the loan after 6 months without paying any pre-closure charges. Also as the inflation is same as the interest rate, they cancel out each other. It is better to buy than rent as emi will equal to rent in the long run and you will end up with an asset. Real estate is the best hedge against inflation in India. Given the construction cost of Rs. 2000 to Rs. 3000 per sq ft and incorporating the land value, anything above 50 lakh is not value for money for a 2 bhk and will take more than 10 years to recover that cost. Always check and verify the land title, encumbrance certificate of last 15 years, commencement certificate and occupancy certificate before buying any property.
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